No formal contract - who wins?

[Lucan Unlordly]

A business associate who produces very high quality cabinet making was asked by the representative/committee member of a local community project to manufacture a bespoke item.

Discussions took place regarding size, shape, the wood to be used and the item was duly delivered to rounds of applause. Until the invoice went in!
There was no formal quotation, the project was by it's nature somewhat open ended, and the final price matches that of a similar item that can be bought off the shelf. Expensive, yes. A rip off no.

Yes a formal quotation should have been requested and supplied but lessons learnt, it wasn't.

The customer is (or was) a personal friend of the cabinet maker and is fully aware of the type, quality and price levels of the work he produces. Would having this prior knowledge be sufficient to argue, in court if needs be, that the buyer should have been aware of the arguably higher cost and had they any concerns should have requested a formal quotation?

 

[MOIC]

I think if it went to court (although it shouldn't), a judge will suggest a price between an 'off the shelf' product - plus extra, as it was bespoke.

This matter should be put to the local community and committee members to decide.

'Let the people vote'!

 

[deniser]

A basic principle of contract law is that you need certainty. Without certainty a contract is void.

However, this is superseded by s 8(2) and (3) of the Sale of Goods Act 1979 which says this:

8. Ascertainment of price.
(1)The price in a contract of sale may be fixed by the contract, or may be left to be fixed in a manner agreed by the contract, or may be determined by the course of dealing between the parties.

(2)Where the price is not determined as mentioned in sub-section (1) above the buyer must pay a reasonable price.

(3)What is a reasonable price is a question of fact dependent on the circumstances of each particular case.

So the contract is enforceable (provided price is the only factor in dispute ie. they are not disputing that there was a contract at all) but the amount payable will be what is reasonable in the circumstances.

 

[paulears]

Why would anyone so clever at what they do not even mention a price? This is surely always a critical element, even though often an awkward one! If nothing was mentioned even setting a ballpark figure - what can he do?

 

[Lucan Unlordly]

Why would anyone so clever at what they do not even mention a price? This is surely always a critical element, even though often an awkward one! If nothing was mentioned even setting a ballpark figure - what can he do?

The ballpark figure was established on the basis of cost for an off the shelf item.

 

[Nochexman]

Did the customer actually ask for the item to be produced?

 

[paulears]

I see where you are going? If the item was discussed, planned and designs finalised and there is evidence of this, then they ordered with no restriction on price? Interesting. A bit like when I made a video for a rich Royal Family hotel owner from the UAE. He wanted a 3 minute video of a piece of rack mounting satellite processing equipment to show at an exhibition. I queried the budget, and was told that it was irrelevant if it met the detailed quality specs. The item was delivered for the session in an armoured car! Two security guards were present for the 6 hours it took to shoot it. It was the only rack mount electronics I have ever seen made from 24 carat gold! I put in what I thought was a fair but quite expensive bill - and they paid by return. A gold piece of electronics that will spend all it's life in a locked cabinet, in a plant room!

 

[WaveJumper]

They say business is business, it's a shame though there are probably going to be no winners here. At the end of the day what price can he put on his friendship.

 

[Lucan Unlordly]

Did the customer actually ask for the item to be produced?

Of course!?

I see where you are going? If the item was discussed, planned and designs finalised and there is evidence of this, then they ordered with no restriction on price? Interesting. A bit like when I made a video for a rich Royal Family hotel owner from the UAE. He wanted a 3 minute video of a piece of rack mounting satellite processing equipment to show at an exhibition. I queried the budget, and was told that it was irrelevant if it met the detailed quality specs. The item was delivered for the session in an armoured car! Two security guards were present for the 6 hours it took to shoot it. It was the only rack mount electronics I have ever seen made from 24 carat gold! I put in what I thought was a fair but quite expensive bill - and they paid by return. A gold piece of electronics that will spend all it's life in a locked cabinet, in a plant room!

Pretty much so yes, but without the formality.
Rather like the landscape gardener who specialises in finished displays, when asked to create an atmospheric feature, buys mature plants as opposed to seedlings and is questioned when the invoice is presented. 'How else does madam think I could create that like wot you wanted?'

'This is what we discussed'
'This is what you wanted'
'This why it had to be bespoke'
'This is what we agreed'

PS: Your story reminded me of a time when I was freelancing, selling embossed Menu Covers to high end establishments. I took a call for 6 bespoke Calfskin presentation folders (which we'd never done so would have to source a manufacturer) to be used for a presentation to the King of Saudi or some such. 'When do you need them for? Well the guys just boarding a plane in the US and these have to be at Heathrow by the time he lands in around 10 hours time or in Saudi when he arrives.
It doesn't matter how much they cost, they can be a £1000 each, you can get a plane and your fare will be covered!
I couldn't get them done, and it turns out nobody was able to.
These days with the web it might be possible.

 

[parkingandsecurity]

Surely this would be down to the fact that both parties clearly intended to enter into a legal relationship. The customer requested work, the supplier considered the options and accepted to do the work. With doing the work is the implied expectation of being paid for said product.

 

[Jessica A.]

A business associate who produces very high quality cabinet making was asked by the representative/committee member of a local community project to manufacture a bespoke item.

Discussions took place regarding size, shape, the wood to be used and the item was duly delivered to rounds of applause. Until the invoice went in!
There was no formal quotation, the project was by it's nature somewhat open ended, and the final price matches that of a similar item that can be bought off the shelf. Expensive, yes. A rip off no.

Yes a formal quotation should have been requested and supplied but lessons learnt, it wasn't.

The customer is (or was) a personal friend of the cabinet maker and is fully aware of the type, quality and price levels of the work he produces. Would having this prior knowledge be sufficient to argue, in court if needs be, that the buyer should have been aware of the arguably higher cost and had they any concerns should have requested a formal quotation?

Who would forget asking about the price? I mean that is the most crucial element before even deciding on getting the work done. Sure, he's his friend but still he's seeking his services in order to get quality work done especially on a custom-made item. If he want to really help his friend in his business, then he wouldn't look at the price and just pay up.

 

[Lucan Unlordly]

Who would forget asking about the price? I mean that is the most crucial element before even deciding on getting the work done. Sure, he's his friend but still he's seeking his services in order to get quality work done especially on a custom-made item. If he want to really help his friend in his business, then he wouldn't look at the price and just pay up.

Reading between the lines I think there's a level of 'embarrassment' involved where the buyer has based their expectations on previous unrelated jobs - help with decorating, rubbish removal etc., - and has to report the higher cost to the steering committee. The expectation not taking account of the fact that this is what the guy does for a living, not as a willing helper.

 

[MOIC]

If that's the case, the buyer should foot the bill himself and decide how to get repaid from the committee.

Lesson(s) learned.